[§514B-162] 
Arbitration.  (a)  At
the request of any party, any dispute concerning or involving one or more unit
owners and an association, its board, managing agent, or one or more other unit
owners relating to the interpretation, application, or enforcement of this
chapter or the association's declaration, bylaws, or house rules adopted in
accordance with its bylaws shall be submitted to arbitration.  The arbitration
shall be conducted, unless otherwise agreed by the parties, in accordance with
the rules adopted by the commission and of chapter 658A; provided that the
rules of the arbitration service conducting the arbitration shall be used until
the commission adopts its rules; provided further that where any arbitration
rule conflicts with chapter 658A, chapter 658A shall prevail; and provided
further that notwithstanding any rule to the contrary, the arbitrator shall
conduct the proceedings in a manner which affords substantial justice to all
parties.  The arbitrator shall be bound by rules of substantive law and shall
not be bound by rules of evidence, whether or not set out by statute, except
for provisions relating to privileged communications.  The arbitrator shall
permit discovery as provided for in the Hawaii rules of civil procedure;
provided that the arbitrator may restrict the scope of such discovery for good
cause to avoid excessive delay and costs to the parties or the arbitrator may
refer any matter involving discovery to the circuit court for disposition in
accordance with the Hawaii rules of civil procedure then in effect.



(b) 
Nothing in subsection (a) shall be interpreted to mandate the
arbitration of any dispute involving:



(1)  The real
estate commission;



(2)  The mortgagee
of a mortgage of record;



(3)  The
developer, general contractor, subcontractors, or design professionals for the
project; provided that when any person exempted by this paragraph is also a
unit owner, a director, or managing agent, such person in those capacities,
shall be subject to the provisions of subsection (a);



(4)  Actions
seeking equitable relief involving threatened property damage or the health or
safety of unit owners or any other person;



(5)  Actions to
collect assessments which are liens or subject to foreclosure; provided that a
unit owner who pays the full amount of an assessment and fulfills the
requirements of section 514B‑146 shall have the right to demand
arbitration of the owner's dispute, including a dispute about the amount and
validity of the assessment;



(6)  Personal
injury claims;



(7)  Actions for
amounts in excess of $2,500 against an association, a board, or one or more
directors, officers, agents, employees, or other persons, if insurance coverage
under a policy or policies procured by the association or its board would be
unavailable because action by arbitration was pursued; or



(8)  Any other
cases which are determined, as provided in subsection (c), to be unsuitable for
disposition by arbitration.



(c)  At any
time within twenty days of being served with a written demand for arbitration,
any party so served may apply to the circuit court in the judicial circuit in
which the condominium is located for a determination that the subject matter of
the dispute is unsuitable for disposition by arbitration.



In
determining whether the subject matter of a dispute is unsuitable for
disposition by arbitration, a court may consider:



(1)  The magnitude
of the potential award, or any issue of broad public concern raised by the
subject matter underlying the dispute;



(2)  Problems
referred to the court where court regulated discovery is necessary;



(3)  The fact that
the matter in dispute is a reasonable or necessary issue to be resolved in
pending litigation and involves other matters not covered by or related to this
chapter;



(4)  The fact that
the matter to be arbitrated is only part of a dispute involving other parties
or issues which are not subject to arbitration under this section; and



(5)  Any matters
of dispute where disposition by arbitration, in the absence of complete
judicial review, would not afford substantial justice to one or more of the
parties.



Any such
application to the circuit court shall be made and heard in a summary manner
and in accordance with procedures for the making and hearing of motions.  The
prevailing party shall be awarded its attorneys' fees and costs in an amount
not to exceed $200.



(d)  In the
event of a dispute as to whether a claim shall be excluded from mandatory
arbitration under subsection (b)(7), any party to an arbitration may file a
complaint for declaratory relief against the involved insurer or insurers for a
determination of whether insurance coverage is unavailable due to the pursuit
of action by arbitration.  The complaint shall be filed with the circuit court
in the judicial circuit in which the condominium is located.  The insurer or
insurers shall file an answer to the complaint within twenty days of the date
of service of the complaint and the issue shall be disposed of by the circuit
court at a hearing to be held at the earliest available date; provided that the
hearing shall not be held within twenty days from the date of service of the
complaint upon the insurer or insurers.



(e) 
Notwithstanding any provision in this chapter to the contrary, the declaration,
or the bylaws, the award of any costs, expenses, and legal fees by the
arbitrator shall be in the sole discretion of the arbitrator and the
determination of costs, expenses, and legal fees shall be binding upon all
parties.



(f) 
The award of the arbitrator shall be in writing and acknowledged or
proved in like manner as a deed for the conveyance of real estate, and shall be
served by the arbitrator on each of the parties to the arbitration, personally
or by registered or certified mail.  At any time within one year after the
award is made and served, any party to the arbitration may apply to the circuit
court of the judicial circuit in which the condominium is located for an order
confirming the award.  The court shall grant the order confirming the award
pursuant to section 658A-22, unless the award is vacated, modified, or
corrected, as provided in sections 658A-20, 658A-23, and 658A‑24, or a
trial de novo is demanded under subsection (h), or the award is successfully
appealed under subsection (h).  The record shall be filed with the motion to
confirm award, and notice of the motion shall be served upon each other party
or their respective attorneys in the manner required for service of notice of a
motion.



(g) 
Findings of fact and conclusions of law, as requested by any party prior to the
arbitration hearing, shall be promptly provided to the requesting party upon
payment of the reasonable cost thereof.



(h)  Any
party to an arbitration under this section may apply to vacate, modify, or
correct the arbitration award for the grounds set out in chapter 658A.  All
reasonable costs, expenses, and attorneys' fees on appeal shall be charged to
the nonprevailing party. [L 2004, c 164, pt of §2]